The truth they dont want you know (CLOUD BASED MINING)

[n3rvi0zz0]

THE BIG LIE ABOUT CLOUD BASED MINING

Hi, Im n3rvi0zz0 and I show my face for first time in this forum.

I've been trading with bitcoin almost three years, first time i "touch one bitcoin" is arround august of 2010 at this time the future of bitcoin it was not clear.
but at the same time the world of bitcoin was perfect, couple of millions knows the existence of this coin but for the rest of the world still hidden this give to us the opportunity to see the good face of bitcoin, the miners accomplished his objectives of build a trusted network and a safe coin, mining hundred of  bitcoins with his pc desktop laptop etc it was a good reward...It was a deserved reward for all the work done, but someone took a  bad decision and he change the future of bitcoin forever.

For this time the firsts ASICS start to build littles farms at home or at work, and the Chinese people still in his business doing trainers for nike.
all running good
but one day something change in the brain of the Founder of Cex him wake up with one Idea .


Couple of months after I've seen his webpage. His idea was take over the network, and steal the reward of miners.

The idea was clever give the idea of freedom to his potential costumers and recover his investment as soon as possible at this time the price of the coin was not to get rich but enough for cover the electricity and buy a new computer or start with the adventure of the ASICS. I'm was one of choose trust in Cex for my investments.

At the beginning everything all right good reward no expensive fees (but that's just what they want you to think) for couple of years the people do good money and they earn money enough for make more big the pool and attract more costumers. the big lie was exactly this, It was a bigger pool, more bitcoins generated for them sounds a dream true?

But the dream don't finish there, at this moment only couple of business have the potential to develop  this massive PH/S and the people join cex as the only way to found one bitcoin and his dream became true.

In the good times of cex   they own 40% of the network  (someone remember this year one advertisement about change some miners to another pool to avoid the double spending?) yeah this was because they one 20 of the 30 ph of the farm this mind of 25 they take arround 17 or 18 bitcoins per block and the rest to share between all his costumers.

70% of the total of bitcoin mined in Cex are in 8 differents accounts (you can check in the blockchain all the data its there)

Not happy with this they apply another diferent types of fees ( half of the mined  now its a fee for maintaining upkeep etc etc) and no its cheap.

I have 300 gh in total in cex (long time ago my miners are in F2pool.com) And today wen i open my account Ive seen in Minus!!!!!!! how fucking its possible if they call a affordable cloud mining???

We need to pay for the blocks they found???
Yes everyone want a company like that, the costumer pay the services (electricity,maintenance,) and they took the money without any spend.


And if just in case someone have more than 1000GH get a mail if they want a overclocked and burned miner.



Last week i wanted to open one account un zeushash too and more worse than cex.

i have 10mh of hashing and 0.06 ltc i mined in 24h 0.05 was maintenance fee for the hosting.


If someone ask me my opinion about Cloud mining every time i say buy your own miner and play in your house at least you dont help to centralize more this amazing coin we have



thanks



N3rvi0zz0


 

 

[inBitweTrust]

Agreed. A pox be upon anyone who cloud mines.

[goozman96]

I appreciate your post and it has given me something to think about. I personally have only physical miners so I'm not too acquainted with cloud mining. Best of luck to you

[Snipe85]

It would be great if we all could have a miner at home but we can't. I understand people who invest in cloud mining but it's still too early to call this a legitimate business or good investment. Time will tell.

[cypher21]

Yeah but the big problem is, that the most of us guys have no time/money to buy his own miner. So we have only that choise...

[cyberpinoy]

Cloud mining is quite complex, a lot of research has to go into every site you choose to mine with. it helps if the site you choose allows both cloud mining as well as personal mining. NOT GAHSH>IO they are criminals there. but maybe a place like Eobot. its Always good to own your own equipment, but places like Philippines can be difficult, between the horrible internet sometimes delivering speeds under 100KBPS and the electric rates and set up it makes machine mining very difficult. In the Philippines if you use over a certain amount of electric they want to deter yu form using so much and they actually charge you more than your neighbor per KWH because you used well over the threshhold. Cloud mining ont eh right place allows you to cover some of those electric costs so your miners can run freely.

The first mine we had was a solar powered mine so electric was not a concern, we had a fire that destroyed our first mine and now have no choice but to use provided electric and It really makes me mad when i have to shuit my machines off to keep from hitting that threshold.

We are looking to get another solar setup once again but the costs here in the Philippines are rediculous.

Sometimes cloud mining is not that bad, sometimes people have no choice. But i can say now is the time to buy, because once bitcoins hits 1000+ dollars those fees will most likely be minimal and the cost to get into cloud will be substantial.

[-ck]

You learn about bitcoin mining, read lots of advertisements, visit lots of flashy sites, compare prices, look at forecasts, consult experts, examine graphs, pick apart forum posts, make predictions based on all that and then you flush your money down the toilet. Then you spend the next 6 months making shit up to convince yourself and others you made money in the process.

[Puppet]

Its no lie (in the case of cex), its basic math. Their maintenance fees are expressed in fiat currency, as you would expect since no electricity company I know off accepts bitcoin. Its not like they hide it: http: // cex.io / maintenance (remove spaces, no idea why the forum hides the link otherwise)

As difficulty goes up, mining revenue goes down. And in particular, as bitcoin price went down, the % of fees went up. The logical consequence is that your per GH revenue plummets and potentially goes negative. This is no different than if you have a miner at home, and you (try to) use your mining revenue to pay the electricity bill.

Of course cex.io was HUGELY overpriced, but since its an open market,  you can blame buyers for that, not cex.io. If buyers had done the math, they wouldnt have bid those prices. If you bought anyway, its your fault, not cex.io

You know, when I saw your post title, I thought your post would be about the actual lie cf cloudmining; the fact most cloudmining 'companies' arent mining at all, and are simple or elaborate ponzi schemes.  If you go base your next investment on apparent profitability alone, you are guaranteed to end up with a ponzi, because only ponzi's can offer (fake) mining contracts at well below cost.

Its ironic cex.io is one of few cloudmining companies offering sufficient transparency to conclude they are legit. Overpriced, yes, but there is enough reason to assume they are not gong to run away with your money, like the vast majority of cloudmining ponzi's.

More details here:
https://bitcointalk.org/index.php?topic=860400.0

[Puppet]

There are a few companies that are confirmed to be mining we have: Hashie, Cex and Gaw (they have proved 5pH)

Hashie proved nothing. Showing up on btcguild stats with ~80TH for what could have been less than a day is no proof. That can be achieved easily by renting rigs at nicehash for 0.0144/TH/day. So what they showed was literally worth ~ 1 BTC. Or maybe 2 at the time.

From GAW Ive seen pictures, which is something, but doesnt prove ownership,  it doesnt prove they still own it today and it certainly doesnt prove their actual hashrate matches or exceeds what they've sold.

Cex.io there is little to no doubt they have the hashrate. Same goes for AMhash, cryptx, Hashnest and KnCloud. Those are the only cloudmining companies Im aware off that provide a mining address and/or allow you to direct your hashrate to your own pool, and therefore provide credible proof of not running  a ponzi or fractional reserve scam.

[Puppet]

Gaw has had Bitmain come and say they have bought 5PH

Long after they had been selling it. If you read my thread, you'll have noticed I suspect GAW  'preselling' hashrate.

Hashie is saying they're backed by ASICMiner and RockMiner and this may just be their AMHash

Show me the link; yes they do resell AMhash which is legit. They have provided zero evidence for their own hashrate and no asic vendor has vouched for that to my knowledge.

btw If you just look at hashie's homepage and see how they stress that AMhash is '100% real and proven'  without saying a thing about their own hashrate, it says enough doesnt it? Why would they even resell someone else's hashrate if they have their own farm and can operate cheaper than amhash?

Its a stupid move by amhash to allow a scam to resell their product, but that doesnt change the fact they are almost certainly scam.

[nwfella]

Gaw has had Bitmain come and say they have bought 5PH

Long after they had been selling it. If you read my thread, you'll have noticed I suspect GAW  'preselling' hashrate.

Hashie is saying they're backed by ASICMiner and RockMiner and this may just be their AMHash

Show me the link; yes they do resell AMhash which is legit. They have provided zero evidence for their own hashrate and no asic vendor has vouched for that to my knowledge.

btw If you just look at hashie's homepage and see how they stress that AMhash is '100% real and proven'  without saying a thing about their own hashrate, it says enough doesnt it? Why would they even resell someone else's hashrate if they have their own farm and can operate cheaper than amhash?

Its a stupid move by amhash to allow a scam to resell their product, but that doesnt change the fact they are almost certainly scam.

I don't know much about Hashie to be honest as I don't use them and for GAW I agree I don't know if they had actually had the amount of power previously (they probably had the scrypt power since they had so many physical machines and i assume they were mining a bit before they shipped out) and the Sha power was probably just from some of their coin they had but now we do know they have the power and no one has been screwed on payments yet, so i'm not worried about it.

Personally I picked up 30GH worth of hash at hashie on 10/23 and thus far everything has been working as it should.  I must admit however, I too am a bit surprised that they are now 'reselling' amhash1 shares (at original IPO cost no doubt) despite the fact that amhash1 on havelock is now trading for over this amount.  Very curious.

[Minerkev]

Yesterday i also sold my ghs...i told the support that this must be a mistake because 20% or 50% can never be minus! I got a long mail back which says they got bad luck in finding new blocks 48h ago ans they would always try to make their service better....and blablabla so on...
all people should sell their ghs as soon as possible! Cex will close if finding a block is only worth 12.5btc !
End of life @ lifetime hashing!

[Puppet]

i told the support that this must be a mistake because 20% or 50% can never be minus!

Maintenance fees are not expressed in %. They are expressed in $ (per GH per month). And yeah, they can exceed your mining revenue (in BTC), possibly just briefly if you are unlucky or permanently if you picked a contract with high maintenance fees and/or BTC price goes down and/or difficulty shoots up. Cex.io should on average still net a positive yield, but no where near enough to warrant the current price.

[galdur]

Cex is a good service apart from mining.

I use them a lot but only buy GHS for
occasional flips.

[bubbaj]

Cloud mining will probably be the way of the future, data centers have the ability to negotiate electricity rates just like all large power intensive businesses, where at home you have few choices. In Australia our average per KWH is $0.27 which means home mining for a profit has nearly ended. As with hardware sellers some cloud mining providers will be scams, others won't I suggest you do research, stay away from ones that don't give good detail about there location. Ones in the US and UK should be fine as long as you can make sure they are registered businesses as if they are scammers they will be bought to justice at some stage.
I diversify and purchase at different sites, to date I have been lucky and have not lost out. If 1 goes down I have 4 or 5 others that will still be going.

[BitcoinExchangeIndia.com]

@OP No doubt it is a good read. It is clear that at 0.00168249BTC/Ghs CEX is no more a profitable option. But, its a brand. You know they are mining. On the contrary, there are some anonymous operations around, which are offering as low as 0.001BTC/Ghs, chance of profit is far more higher, though there are Ponzi allegations against most of them...

[btckold24]

I got out of cex after a few months thank god. Their fee's are ridiculous. Hashlets seem to be working good so far for me. Looking like a 60-90 day roi depending on difficulty increases

[goozman96]

Puppet, thanks for that link. It was interesting to see the breakdown of each of the major cloud mining services and how most of them seem to be a scam. At least GAW seems to be possibly legit.

[allcoinminer]

A simple solution is, never enter into a business where direct or indirect conflict of interest exists.
At this time, even with owned miner, paying lower electricity charge or even free solar electricity,
it's difficult to profit from a mining device in the long run.
So when adding the conflict of interest in this formula and the total control is on the hands of cloud mining company,
just ask yourselves, who will win the race. You got your answer now.

[inBitweTrust]

A simple solution is, never enter into a business where direct or indirect conflict of interest exists.
At this time, even with owned miner, paying lower electricity charge or even free solar electricity,
it's difficult to profit from a mining device in the long run.
So when adding the conflict of interest in this formula and the total control is on the hands of cloud mining company,
just ask yourselves, who will win the race. You got your answer now.

Good advice. Additionally, always be skeptical about any comments  from shill accounts or paid affiliates. Even if they think they have good intentions they are rationalizing misleading and unethical behavior from the companies they work for. I feel embarrassed for them the mental acrobats they go through to justify why cloud mining is a good investment,(Even assuming there is no ponzi scheme or fractional reserve mining happening ).

It is trivial to prove one has the hashing power to backup their clients mining with the blockchain and through mining pools, why aren't they doing this?